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School of Management, Dwarka by Navonil Nag in partial fulfillment of the requirement for the award of PG Diploma in Business Management, is a bonafide work carried out by him/her under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried out during -------to ----- in Sharekhan Limited.
Date:
ACKNOWLEDGEMENT
I express my deep sense of gratitude towards my guide Professor Neeraj Singhal, faculty of Apeejay School of Management, Dwarka, without whose help this project study would have been extremely difficult. He has helped me with his valuable suggestions in preparing this project right from the beginning till the final draft of the report. For his kind effort to make all the required facilities available and gave his valuable suggestions in preparing this project report. I am also thankful to Mr. Jaipal Singh (Assistant Manager) for giving me an opportunity for giving me an opportunity for getting in valuable experiences in such reputed organization and providing me the actual training, required knowledge and guidance in completing this training successfully. Finally, I would like to thank my parents, friends and colleagues who helped me directly and indirectly in preparation of the project report.
Executive Summary
Conceptually the mechanism of stock market is very simple. People who are exposed to the same risk come together and agree that if anyone of the person suffers a loss the other will share the loss and make good to the person who lost. The initial part of the project focuses on the job and responsibilities I was allotted as a summer trainee. It also makes the readers aware about the techniques and methodology used to bring this report alive. It also describe about the objective of this study. It also enlightens the readers about Sharekhan Limiteds strategies to acquire new customers. Further the project tells us about the profile of the company (Sharekhan Ltd.). It provides knowledge to the readers regarding the companys history, mission, vision, customer base and the reasons to be associated with the company. Also it gives special emphasis on the selling of products and management of the company. The next few chapters are devoted to the study of my project in a very basic way. It also suggests some of the strategies that can be applied to earn more even when the market is too much volatile. The next part of the project throws light upon my findings and analysis about the company and the suggestions for the company for better performance.
CHAPTER 1
Every Lead captured by SE should be uploaded in the LMS (by email to his Team Manager) for proper Updating, Follow-ups & Records.
who wants to know more about the product. While going for an appointment we should always be positive. No client wants to hear a person who sounds dull. We should speak clearly, so that the client can understand our statement. We should always address person from his last name. We are not supposed to use fillers. Don't Ask Close Ended Questions as they will have only YES or NO answers. Don't interrupt the client while he speaks. A Good Sales Person is a Good Listener first & then a Good Speaker.
2. Client Meeting: Value time both for client as well as for the sales person. We
should be on time. We should dress formally and should look like a sales executive. Every product & services requires mature approach and we should handle it effectively. Carry relevant information about the market and the sales kit. 3. Presentation to Clients: We should always open our presentation with greetings and identifying clients needs by asking open ended questions. This will help the sales person in profiling & positioning the services accordingly. During presentation we should try to go for trail close. Question like : On whose name are u planing to open an Account is quite appropriate to the situation.
4. Objection Handling: Rephrase the Client Objection to know whether the
objections are real or not. Provide more information to solve the objection. If the client focuses on Brokerage, try to talk about returns first & then address the brokerage issue & vice versa. 5. Closing: Closing is the most important part of a Sales Process. Take out the KYC & then complete all the formalities.
CHAPTER 2
market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.
Nature of Business :
Service Provider
Services
Number of Employees :
Over 3500
Revenue
Website
www.sharekhan.com
Slogan
Vision
To be the best retail brokering Brand in the retail business of stock market.
Mission
To educate and empower the individual investor to make better investment decisions through quality advice and superior service.
Sharekhan is infact Among the top 3 branded retail service providers No. 1 player in online business Largest network of branded broking outlets in the country serving more than 7,00,000 clients.
Technology With its online trading account one can buy and sell shares in an instant from any PC with an internet connection. One can get access to its powerful online trading tools that will help him take complete control over his investment in shares. Accessibility Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through its centers across the country over the internet (through the website www.sharekhan.com) as well as over the Voice Tool. Knowledge In a business where the right information at the right time can translate into direct profits, one can get access to a wide range of information on Sharekhan limiteds content-rich portal. One can also get a useful set of knowledge-based tools that will empower him to take informed decisions. Convenience One can call its Dial-N-Trade number to get investment advice and execute his transactions. Sharekhan ltd. have a dedicated call-centre to provide this service via a Toll Free Number 180022-7500 & 1800-22-7050 from anywhere in India. Customer Service Sharekhan limiteds customer service team will assist one for any help that one may req uire relating to transactions, billing, demat and other queries. Its customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com. Investment Advice Sharekhan has dedicated research teams of more than 30 people for fundamental and technical researches. Its analysts constantly track the pulse of the market and provide timely investment advice to its clients in the form of daily research emails, online chat, printed reports and SMS on their mobile phone.
Classic Account (which include a feature known as Fast Trade Advanced Classic Account for the online users) and Speed Trade Account
CLASSIC ACCOUNT
This is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who does not trade too frequently. This account allow investors to buy and sell stocks online along with the following features like multiple
watch lists, Integrated Banking, Demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer.
a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I. Two dedicated numbers(1800-22-7500 and 39707500) for placing the orders using cell phones or landline phones II. Automatic funds transfer with phone banking facilities (for Citibank and HDFC bank customers) III. Simple and Secure Interactive Voice Response based system for authentication IV. get the trusted, professional advice of Sharekhan limiteds Tele Brokers V. After hours order placement facility between 8.00 am and 9.30 am c. Integration of: Online Trading +Saving Bank + Demat Account. d. Instant cash transfer facility against purchase & sale of shares. e. IPO investments. f. Instant order and trade confirmations by e-mail. g. Single screen interface for cash and derivatives.
This is an internet-based software application, which enables one to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement. This account comes with the following features: a. b. c. d. e. f. g. Instant order Execution and Confirmation. Single screen trading terminal for NSE Cash, NSE F&O & BSE. Technical Studies. Multiple Charting. Real-time streaming quotes, tic-by-tic charts. Market summary (Cost traded scrip, highest value etc.) Hot keys similar to brokers terminal.
h. Alerts and reminders. i. Back-up facility to place trades on Direct Phone lines.
CHARGE STRUCTURE
Fee structure for General Individual: Charge Account Opening Classic Account Rs. 750/= Speed Trade Account Rs. 1000/=
Intra-day 0.10 % Brokerage Delivery - 0.50 % Depository Charges: Account Opening Charges Annual Maintenance Charges
Rs. NIL Rs. NIL first year Rs. 300/= p.a. from second calendar year onward
One need to call them at phone number provided below and asks that he want to open an account with them. a. One can call on the Toll Free Number: 1-800-22-7500 to speak to a Customer Service executive b. Or If one stays in Mumbai, he can call on 022-66621111 One can visit any one of Sharekhan Limiteds nearest branches. Sharekhan has a huge network all over India (640 centers in 280 cities). One can also log on to http://sharekhan.com/ link to find out the nearest branch.
One can send them an email at info@sharekhan.com to know about their products and services.
One can also visit the site www.sharekhan.com and click on the option Open an Account to fill a small query form which will ask the individual to give details regarding his name, city he lives in, his email address, phone number, pin code of the city, his nearest Sharekhan Ltd. shop and his preferences regarding the type of account he wants. These information are compiled in the headquarter of the company that is in Mumbai from where it is distributed through out the countrys branches in the form of leads on the basis of cities and nearest share shops. After that the executives of the respective branches contact the prospective clients over phone or through email and give them information regarding the various types of accounts and the documents they need to open an account and then fix appointment with the prospective clients to give them demonstration and making them undergo the formalities to open the account. After that the forms that has collected from the clients, is scrutinized in the branch and then it is sent to Mumbai for further processing where after a few days the clients account are generated and activated. After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the clients address mentioned in the documents provided by them. As soon as the clients receive the Welcome Kit, which contains the clients Trading ID and Trading Password, they can start trading and investing in shares.
Generally the process of opening an account follows the following steps: LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES CONTACT THE PERSON OVER PHONE OR THROUGH EMAIL
DOCUMENTATION
TRADING
Apart from two passport size photographs, one needs to provide with the following documents in order to open an account with Sharekhan Limited.:
Photocopy of the clients PAN Card which should be duly attached Photo copy of any of the following documents duly attached which will serve as correspondence address proof: Passport (valid). Voters ID card. Ration Card. Driving License (valid). Electricity Bill (should be latest and should be in the name of the client). Telephone Bill (should be latest and should be in the name of the client). Flat Maintenance Bill (should be latest and should be in the name of the client). Insurance Policy (should be latest and should be in the name of the client). Lease or Rent Agreement.
Saving Bank Statement** (should be latest). Two cheques drawn in favour of Sharkhan Limited, one for the Account Opening Fees and the other for the Margin Money (the minimum margin money is Rs. 5000).
** A cancelled cheque should be given by the client if he provides Saving Bank Statement as a proof for correspondence address.
NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening an account.
Market Report. Apart from these, Sharekhan Limited issues a monthly subscription by the name of Valueline which is easily available in the market.
SSKI has been voted as the Top Domestic Brokerage House in the research category, twice by Euromoney Survey and four times by Asiamoney Survey.
Sharekhan Limited won the CNBC AWARD for the year 2004.
CHAPTER 3
TARGET MARKET
1. Different properties dealers. 2. Charted accountants. 3. Employees of both Government and Private Offices. 4. College going students. 5. House wives. 6. Businessmen. 7. Corporate Employees etc.
TARGET ASSIGNED
To sell 4 demat accounts per month.
REPORTING RELATIONSHIP We were required to report to our corporate mentor Mr. Jaipal Singh, who is also
the Assistant Manager at Sharekhan Limited, Jhandewalan office on a daily basis.
WORK ENVIRONMENT
1. Friendly, cooperative and helpful staff. 2. Disciplined working environment. 3. Personal computers and internet connection were provided for trading purpose. 4. Telephones were provided for the purpose of cold calling. 5. Flexibility in terms of timings for going for surveys.
CHAPTER 4 PART 1
WEEKLY ANALYSIS
WEEK No. 1: Had theory classes for a week in Sharekhan. In this training we were told about Sharekhan Company, history of Sharekhan, organization structure, products, Sharekhan research reports, trading techniques, clients, Demat accounts, Derivatives, and Online trading accounts in brief - Speed Trade and Classic account, learned how to buy and sell shares through these online terminals, Sales technique, Sharekhan`s brokerage.
WEEK No. 2: Gained detailed knowledge about classical account. Classical account is a web-based product of sharekhan and consists of Online trading in Equity & Derivative. Dial-n-Trade. Online Trading + Bank + demat. Cash transfer. Order and trade confirmation through e-mails. Single screen interface for cash and derivative.
WEEK No. 3: In this week we were told about the speed trade. Trade tiger is a software of sharekhan which is given to its customers for trading. Speed trade enables its users Online trading in Equity & Derivative.
Dial-n-Trade. Online Trading + Bank + Demat. Cash Transfer. Order and trade confirmation through e-mails. Single screen interface for cash and derivative. Live Terminal.
WEEK No. 4 onwards: We were asked to open a demat account so that we could have practical knowledge about what we have learned in three previous weeks. We started trading in currency and then shifted to equity market to trade in nifty. We went for questionnaire activities to generate new leads as well as for surveys. We used to check that whether all the forms for opening a demat account are fully completed or not and if there are any errors.
PART II
Research Methodology
Introduction
Research is one of the best instrument to identify the investing pattern of consumers to invest in various sectors and to study different sectors of stock market. Research is careful enquiry or examination to discover new information and relationships and to expand the existing knowledge.
Objective of Study
Every study is conducted for some specific purpose or to solve some existing problem. When any research is conducted it has some primary objective that helps to solve the main problem whereas a secondary objective helps to solve the peripheral problems. The primary and secondary problems of this research are: Primary Objective The primary objective of carrying out this research is to find the perception of consumers towards stock market and its various sectors. Consumers include both group; people who have already invested and people who want to invest. Secondary Objective 1. To find out the most viable investing options 2. To know the time horizon for investing in equity market and to know the rate of return expected by them. 3. To know consumers are motivated to invest in stock market.
there can be some limitations in the report that may be due to my knowledge level or due to some other factors. Accordingly, the following limitations can be prevailing in my report 1. Respondents might have felt hesitation in providing information related to their age, income etc. So, there can be some data which can be questionable because of unwillingness of respondents to give right information. 2. Sample selected may not represent the whole population, as sample size selected is very small in proportion to population due to time and cost constraints. 3. Many respondents may have given biased answers.
Research Design
Research design is the plan structure and strategy if investigation conceived so as to obtain answers to research questions and to control variance. A research design is the master plan or model for the conduct of formal investigation and survey. It is specification of methods and procedures for acquiring the information needs for solving the problem. It decides the source of information and methods for gathering the data. I have used descriptive research design for the purpose.
Descriptive Research
Descriptive research describes data and characteristics about the population and phenomenon being studied. Descriptive research answers the questions who, what, when, where and how. This study is complex and determines high degree of skills to study the problem.
Primary Data
Primary Data means data collected directly from firsthand experience. I have used Questionnaire Method for the primary data collection for the study.
Secondary Data
Secondary Data means data which are collected by anyone for a particular purpose and which are used by others for different purpose. I have also used secondary data for the study like company brochures, websites, journals etc.
Sampling Plan
The effectiveness of report depends upon the sample size selected from the population.
Sampling Unit
Here, the target population is decided on the fact that who are the actual and potential customers, each sample has the chance to be selected on the equal basis and this survey has been done in Delhi.
Sample Size
Sample size of 150 was used.
Sampling Frame
Sampling frame is the actual set of units from which the sample has been drawn. I have used simple random sampling method for conducting the survey. In the above method all units from the sampling frame have an equal chance to be drawn and to occur in the sample. Here, I have used sampling frame as an actual and potential consumers from Delhi as well as customers of Sharekhan Limited. Here, each sample has the chance to be selected on an equal basis because simple random sampling method was used.
Response Rate
1. The response rate was good. 2. I have used questionnaire method for financial information of the respondent, most of the people hesitated to provide the required information. 3. I have visited 150 potential respondents. .
Analysis of Questionnaire
Age of Respondents
70 60 50 40 30 20 10 0 20-30 30-40 40-50 More than 60 Age Group
Occupation Of Respondents
No. Of Employees
70 60 50 40 30 20 10 0 Government Employee Businessman Corporate Employee Self Employed No. Of Employees
Q1) Ans)
What are your investment options? a. Bank Bank: Stock Market: Both b. Stock Market 70 10 70 c. Both
Investment Options
INTERPRETATION 1. 63.63% of people think of bank only as an investment option. 2. 6% of people think of stock market as viable investment option. 3. Around 63% people think that both stock market as well as banks are suitable investment options.
Q2) Ans)
Why do you prefer to invest in the above chosen option? a. Low returns b. Constant return Low return Constant return High return 10 75 65 c. High return
INTERPRETATION 1. 6 % of people chose their investment options on the basis low return. 2. 50% of people chose their investment options on the basis of constant returns. 3. About 43% of people chose their investment option on the basis of high returns.
Q3) Ans)
Why did you chose the answer in the above question? a. Due to risk b. Due to other factors Due to risk Due to other factors 86 64
Risk Factors
INTERPRETATION 1. Majority of people chose their investment option keeping the risk factor in mind. 2. For other there were other factors like family persuasion, advice and guidance etc.
Q4) Ans)
Do you invest in stock market? a. Yes Yes No In Future b. No 64 32 54 c. Not now, but in future
INTERPRETATION 1. Around 43% people who are majority do invest in stock market in various instruments. 2. 22% people do not invest in stock market. 3. Around 35% are the group of people who are not currently investing but would like to invest in the near future.
Q5) Ans)
What is your investment horizon? a. 6 to 12 months. b. 1 to 2 years c.2 to 3 years. d. More than 3 years.
INTERPRETATION 1. Majority of respondents i.e. 37% look for long term investments for more than 3 years. 2. For two to three years around 29% of respondents look for investments. 3. 26% off respondents look for investments ranging for 1 to 2 years. 4. Only 6% of respondents look for investments ranging within a year.
Q6) Ans)
If you want to invest, which investment option will you prefer ? a) b) c) d) e) Equity Share Commodities Mutual funds Bonds Fixed deposits
INTERPRETATION 1. Fixed Deposits are preferred by majority of investors i.e. around 35%. 2. 31% of respondents prefer equity shares. 3. 18% of respondents presently invest or are planning to invest in commodities. 4. 14% of respondents invest in bonds. 5. Only 2% prefer mutual funds.
Q7) Ans)
How do you came to know about investment in stock market ? a. Newspaper Advertisement d. Internet. b. Brokerage Firms c. Social Circle
Sales
INTERPRETATION Majority of people came to know about trading in stock market from social circles and brokerage firms. Internet and newspaper advertisement played a least role in informing about the same.
Q8) Ans)
What percentage of your income do you invest in stock market? a. Less than 10% d. More than 50% b. 10% to 20% c. 20% to 50%
60
50
40
30
20
10
INTERPRETATION 1. Majority of people invest about 10 to 20 % of their income in stock market. 2. Around 20 people invest less than 10 % of their income in stock market. 3. 55 people invest 20 to 50 %of their income. 4. Only 11 people invest 50 % or above part of their income.
Q9) Ans)
Which of the following factors do you consider while investing in stock market ? a. Market Trend. b. Profitability c. Economic Condition
d. Government Policies
60 50 40 30 Factors for investment 20 10 0 Market Trends Profitability Econoomic Conditions Govt. Policies
a. Yes
b. No
INTERPRETATION 1. Around 66 people actively participate in stock market trading. 2. 52 people dont trade actively in stock market.
Q12) Ans)
a. Yes Yes No
b. No 87 31
Diversification
Yes No
Q11) With which brokerage firm do you have your or are you planning to have your demat account ? Ans)
40 35 30 25 20 Brokerage Firms 15 10 5 0 Sharekhan ICICI Karvy Motilal Oswal Kotak Securities
Q12) Are you satisfied with the services provided by your brokerage firm ? Ans) a. Yes Yes No 103 15 b. No
Satisfaction
Yes No
FINDINGS
As the main objective of the study was to find out the perception of consumers towards stock market or equity market. So accordingly are the findings of the survey. 1. From the study it is clear that 42% of the people currently invest in stock market and 21% are not investing in stock market. Also, 36% of people are ready to invest in the stock market at a future point of time but not presently. 2. Also, investment in equity as fund is preferred by many people and it is in second position only to fixed deposits. 3. Around 46% of investors invest around 10% to 20% of their income in stock market. It means consumers trust the growth of stock market and they are ready to spend a considerable proportion of their income. 4. Majority of people 47% invest in equity market keeping in vie a long term gain. 5. Consumers are motivated by friends to enter into the stock market and some others are motivated by newspaper advertisements, broking firms and internet as well as current scenario of economy. 6. Other thing I found out that 56 consumers have considered profitability as the most important factor while choosing to invest in stock market. There are other factors like Government policies, economic conditions which are also important while choosing to invest in equity market.
CONCLSUION
During my training period I have studied Consumers perception towards stock market or equity market by using Descriptive research design as a questionnaire method where respondents were from Delhi NCR. From the survey I found out that people are investing in equity market to earn higher profits by investing a considerable proportion of their income in the stock market. Here people invest for both short term as well as long terms. Generally people who invest for long term are beneficial in equity market. People are motivated by friends and family members as well as brokers to invest in equity market. Some people are satisfied while others are unsatisfied with the equity market. Diversification is also another important aspect of equity market investment. People diversify their investments so that their loss is minimized.
Recommendation to company 1. People who are not investing and people who will invest in future can be targeted by the broking companies to attract new investors. 2. Broking firms should promote equity as long term investment plans. 3. The stock broking firm should provide better services to their clients. 4. Companies should focus on students because equity market involves risk and younger generation likes to take risk. 5. More flexibility should be provided by the broking firm.